Moving All IT Applications to an External SaaS Cloud Provider: The Impact on IT Governance

The Impact of Moving All IT Applications to an External SaaS Cloud Provider

Question

From an IT governance perspective, which of the following would be the MOST significant impact of moving all IT applications to an external Software as a Service (SaaS) cloud provider?

Answers

Explanations

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A. B. C. D.

C.

Moving all IT applications to an external Software as a Service (SaaS) cloud provider can have significant impacts on IT governance. Of the options given, the most significant impact would be on the shift from service delivery to service management (Option D).

Service delivery refers to the implementation and operation of IT services, while service management is the process of managing those services to meet business needs. When IT applications are moved to an external SaaS cloud provider, the responsibility for service delivery is transferred to the cloud provider. This means that the IT department no longer has direct control over the implementation and operation of those services. Instead, the IT department becomes responsible for managing the cloud provider to ensure that the services provided meet the needs of the business.

This shift from service delivery to service management can have a number of implications for IT governance. For example, the IT department will need to develop new processes for managing the relationship with the cloud provider, including monitoring service level agreements (SLAs) and performance metrics. The IT department will also need to establish new risk management processes to assess the risks associated with using an external provider and ensure that the necessary controls are in place to mitigate those risks.

While the other options given (updating key risk indicators, integrating the IT department with business lines, and improving IT service alignment with business) are important aspects of IT governance, they are not as significant as the shift from service delivery to service management in the context of moving IT applications to an external SaaS cloud provider.